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Asian Markets Decline as Trade Concerns Spark Another Selloff in U.S. Stocks

Investing.com – Asian markets declined in morning trade on Tuesday as prospect of an escalating trade war sparked another selloff in U.S. equities overnight after China and the European Union released a joint warning on the consequences of a trade war.

“Unilateralism is on the rise and trade tensions have appeared in major economies,” Liu said. “China and the EU firmly oppose trade unilateralism and protectionism and think these actions may bring recession and turbulence to the global economy.”

"There's no plans to impose investment restrictions on any countries that are interfering in any way with our country. This is not the plan," he said, adding that the markets were overreacting to recent reports that the administration would restrict foreign investment.

Treasury Secretary Steven Mnuchin, who has pressed within the administration for a negotiated settlement to trade disputes with China, denied the measures would be aimed specifically at China.

The restriction is “not specific to China, but to all countries that are trying to steal our technology,” he said in a tweet on Monday.